MSV
1.-5.10. 2018

International Engineering Fair

India is attracting Czech investors

The Czech-Indian Business Forum at MSV 2017 was about new possibilities
of cooperation, including the involvement of Czech companies in the "Make
in India" programme. Significant opportunities are also offered by the
defence, aerospace, automotive, information technology, energy and mining sectors.

"The MSV is unique to India. We
are here again after five years as a "partner country" and we have
seen that the extent of the fair has grown over this period. India has a
significant presence of trade and industry representatives here, more than 80
exhibitors have arrived from different parts of the country," said C.R.
Chaudhary, Minister of Trade and Industry of the Republic of India. "The
annual holding of such an impressive fair certainly strengthens the economic
ties of Central Europe with the rest of the world. I am convinced that India's
participation in the MSV, along with the bilateral negotiations we are
conducting here, paves the way for deepening trade and investment ties between
India and the Czech Republic," the Indian minister added. He also welcomed
the hospitable acceptance of the Indian delegation and named the Czech Republic
as the gateway to the European Union and to the Central and Eastern European
region. He recalled that trade between India and the Czech Republic increased
to $ 1 billion last year.

The meeting of the Czech-Indian
Business Forum was preceded by the meeting of Minister C.R. Chaudhary and his
Czech counterpart Jiří Havlíček, where mutual interest in deepening economic
co-operation was confirmed. "India is a partner country of MSV after five
years, which is why we have to evaluate our economic relations so far and
discuss what we can do for their further development. We have agreed that there
are a number of exciting industries where our companies can work together.
First of all, it's the "Make in India" government programme, which we
would like to join. We see great opportunities in the defence and aerospace
sectors, as well as in the automotive industry and in the highly evolving IT
and services industries," Minister Havlíček said at the end of the
meeting. He also publicly applauded the participation of Indian companies in
this year's MSV as a significant impetus for the further development of mutual
relations.

The conference was
organized by the Confederation of Industry of the Czech Republic, which puts
great emphasis on co-operation with India because the volume of mutual trade
and investment is far from fulfilling the potential given by the size and
growth of the Indian market. This could change with the "Make in India"
programme that will allow foreign investors to hold up to a 100% stake in
Indian companies if they market goods under the Make in India brand. Today, the
manufacturing industry in India generates only about 18% of GDP, and the
government wants to increase this share over the next five years to 25%. The
condition for industrial development is also the relaxation of labour market
regulation and the improvement of transport infrastructure and energy supply.
It is in these areas that Minister C.R. Chaudhary sees opportunities for
cooperation with Czech companies.

Trading with India is a great opportunity for
our companies, but at the same time they have to cope with local differences
and obstacles. According to experts from CzechTrade it is necessary to prepare
for long negotiations, thoroughly pre-examine the market and ensure the
presence of the company’s own sales representative. And it is not recommended
to underestimate neither Indian partners nor the Indian market – only the top
products and technologies will succeed. Together with GDP growth - 7.8% last
year – living standard and with it the demands of the population are rising in
India. The middle class is growing at a tremendous pace and the high proportion
of children and young people is evidence that India is also the future and it
is worthwhile to approach the local market with a long-term vision.